American food giant Mondelēz fined EUR 337.5 million for violating EU antitrust rules

The European Commission has imposed a fine of €337.5 million on Mondelēz, the US multinational company behind popular brands such as Oreo and Toblerone, for obstructing cross-border trade within the EU single market. The decision ends a five-year investigation into the company’s practices, which were found to be in breach of EU antitrust rules.

Antitrust investigation revealed that Mondelēz was illegally restricting retailers from sourcing products from Member States where prices were lower, effectively maintaining higher prices across the EU. This practice, covering the period 2006-2020, involved concluding agreements with traders to restrict the sale of products in certain EU territories, affecting chocolates, biscuits and coffee.

“This harms consumers who pay more for chocolates, cakes and coffee. This is a key concern for European citizens, and even more so in times of very high inflation, when many people are facing a cost of living crisis,” said Margrethe Vestager, Vice-President of the Commission, at a press conference today.

Vestager stressed that these practices undermine parallel trade, in which traders buy products in countries with lower prices to sell them in markets where prices are higher. The Commission sees parallel trade as a mechanism to provide consumers with greater choice and keep prices competitive.

“Parallel trade has huge potential if not restricted. It puts downward pressure on prices,” added Vestager, who oversees competition law enforcement.

The findings of the European Commission show that Mondelēz concluded 11 separate agreements with seven entrepreneurs to restrict cross-border sales, which constitutes a violation of antitrust regulations. It was found that such behavior violates Art. 101 and 102 of the Treaty on the Functioning of the European Union (TFEU), which prohibit restrictive business practices and abuse of dominant market positions.

In recognition of Mondelēz’s cooperation during the investigation, the fine was reduced by 15%, which will facilitate a more effective resolution of the case. Despite this reduction, the significant fine underlines the Commission’s commitment to enforcing antitrust rules and protecting consumer interests in the single market.

Source: Euro News